Cost estimates refer to an approximation or prediction of the potential cost of a project, product, service, or other investment. It is a crucial part of budgeting and planning for any business or organization as it helps determine the feasibility of a venture before making significant financial commitments. Cost estimates can be based on various factors such as historical data, market research, industry standards, and expert opinions. They provide valuable information to decision-makers about potential expenses, allowing them to make informed choices regarding investment opportunities or resource allocation.